Central Bank Independence and Inflation Expectations: Evidence from British Index-Linked Gilts

  • Mark M. Spiegel, Laura Haworth
  • Published 1998


This paper conducts a case study of the impact of the May 6, 1997, announcement of enhanced independence of the Bank of England on estimates of expected future inflation and real interest rates. These are generated from observed yields on conventional and index-linked British gilts. For the longest-term bonds in the study, we find a 34 and 60 basis point… (More)

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